Desperately panicking - debt collection

kittykirsty

Hi folks,

Apologies if this isn't the best place to put this, but I wasn't really sure where it should go.

I'm nearly in tears after coming home from a great day to find a letter from a debt collection agency - Walker Love. They are looking to collect £834 from me plus 10% surcharge for "outstanding council tax".

I received a letter in July that my council tax was due and phoned up immediately to pay. I haven't received anything from the council since, but it looks as though they are looking to collect on the remaining year's balance as of August. It's as if I've supposed to have paid at some point in August, but as I said, I've not had any letters from the council since July.

Can anyone help advise me what to do? If I call the council first thing and explain this to them is there anything they can do since the debt has now been passed on? I've never had anything like this before and I'm just so worried that there's going to be a black mark against my name now. I also can't really afford to pay the whole thing off in one go. Please help!

Tixy

Were you originally paying your council tax each month?
When they wrote to you in July was that to ask for the full amount of just the amount due for that month?

I would certainly contact the council first. I suspect that this debt has not actually been sold on yet, just that they have a debt collector working for them.

Ideally you need to find out the balance due in total for the year and then come to an arrangement over the repayments. Once you have not kept up with payments some councils will ask you to pay slightly in front so you don't get into arrears again, although some will be happy to spread the remaining balance from now until March.

As to a black mark, this is probably a liability order at this stage, through the court as the council can obtain this without consulting with you. I'm fairly certain that this doesn't go on your credit file though (as its not consumer credit) - but its quite late this evening so hopefully someone else will confirm my tired brain is correct on this!

thechippy

Contact the council direct to confirm what you owe.
Generally, they will come to some sort of payment arrangement.

Don't panick yet, just get back to us after speaking to the council.

There is always a way to sort your debts....;)

Edit - Tixy beat me to it

mum2one

Big hugs to start off with, def sounds like the council have just started the debt procedure as a frightner, I would ring them tomorrow, sorry to ask are you much in arrears, - if its just this year then surely they can add it on to the remainder (just make sure you can afford it before you agree. xx

kittykirsty

Thanks guys. you've helped calm me a little,

I was paying every month, one month's worth at a time (I know I should have set up a direct debit, but I was waiting to get forms for the reduction since I'm now living alone). The July letter was just for that month's installment and that was it. I think it's really odd that I've always had a reminder (or two) and this time round I had nothing. Actually, I should have had four, first and second reminders for me, and first and second reminders for my partner who is no longer living here.

I was fully up to date with payments and so in August should have had a letter for one month's payment. Since they didn't receive it I guess they've gone for the "if you do not pay the amount shown above within the required 7 days the full years outstanding balance becomes due" clause. It's not like I've racked up 7/8 months worth of debt with them.

I'll call first thing and hope that they will tell me what's going on.

Thanks again!